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Calling it the worst natural rubber shortage in years, industry analysts expect record shortages to continue into next year, according to reports.

Heavy demand by tyre-makers around the globe coupled with a combination of drought and heavy rains in plantation areas has sharply reduced output and inventories of natural rubber, according to Bloomberg, with analysts saying natural rubber production will continue to lag for the next two years. What that means is further increases in natural rubber costs to tyre-makers, and higher finished good prices for tyre dealers and consumers.

American Tyre Manufacturers Announce Price Hikes to Meet Rubber Costs

Major American tyre-makers, Goodyear and Cooper have announced that they will raise North American retail prices by up to 6.5 per cent, tracking the continuing rise of raw material costs.

Major American tyre-makers, Goodyear and Cooper have announced that they will raise North American retail prices by up to 6.5 per cent, tracking the continuing rise of raw material costs.
Spokespeople for both companies told Bloomberg today that following the price rises implemented in June, materials such as rubber have continued to rise, making further hikes necessary.